A possible ’growth deal’ intended to boost the economy of mid Wales has been announced in the budget.
Chancellor Philip Hammond has promised the UK government will begin negations towards growth deals for north and mid Wales.
Welsh secretary Alun Cairns said formal negotiations over a long mooted deal for north Wales will be opened and talks for a possible Mid Wales deal will begin.
Overall the Welsh Government will receive an extra £1.2 billion over four years as a result of the budget.
The Welsh Government currently spends around £15bn a year and the additional money will be passed to Wales, under the Barnett formula, due to extra spending on projects in England.Opposition parties say around half of the extra money comes in financial transactions which must be repaid to Westminster and with restrictions on what it can be spent on.
Conervative MP Mr Cairns said: "The Chancellor has today set out a powerful package of measures which will help shape Wales’ economy into one that is fit for the future.
"The commitment to formally enter into negotiations over a growth deal for north Wales as well as kick starting early discussions for a growth deal for mid Wales are significant pan-Wales announcements.
"The move to improve rail services for businesses, workers and visitors from both sides of the Wales-England border, taken with the abolition of the Severn Tolls is also a clear demonstration of the UK Government’s ambition to move the Welsh economy into the fast lane."
The UK Government is already committed to city deals in Cardiff and Swansea, worth £615 million over the next 20 years, and said it is open to proposals for a mid-Wales Growth Deal.